Law Create and Grow

• Law 18/2022, on the Creation and Growth of Companies, known as the “Create and Grow Law”, was approved within the framework of the Recovery, Transformation and Resilience Plan

Law 18/2022, of September 28, on the Creation and Growth of Companies, known as the “Create and Grow Law”, has two major regulatory axes:

• Promote the creation of companies, facilitating and making the incorporation process more flexible, both in its economic aspects (capital figure) and formal aspects (incorporation procedures).
• Promote the increase in business size, its growth, with transversal measures, from the reduction of administrative obstacles to new financing options.

This legal reform is relevant, since it supports entrepreneurship in a country that has a productive fabric made up almost entirely of SMEs and the self-employed. Aimed at speeding up the creation of companies, reducing commercial delinquencies and facilitating access to financing with reforms aimed at promoting entrepreneurship.

Bearing in mind that a main objective is the general improvement of the economic regulatory framework, three clear mechanisms are provided: simplify regulations, eliminate unnecessary or obsolete regulations, and establish more agile procedures.

Social capital

Currently you can create a limited liability company with just one euro. This measure also entails a decrease in the costs of setting up a company.

A direct consequence of this measure is the repeal of the successively formed limited company (SLFS) or the new company limited company (SLNE).

delinquency

In particular for SMEs, late payment implies a financial and investment cost that they often cannot afford, with serious effects on liquidity and profitability.

For this reason, the obligation of electronic invoicing is extended, with the aim of achieving greater traceability and control of payments. Electronic invoicing can also reduce costs and digitize the day-to-day of companies.

Formalities

The electronic constitution is facilitated, through the Single Window of the Information Center and Business Creation Network (CIRCE) and the Single Electronic Document (DUE), which will allow us to carry out other procedures on-line necessary.

Financing

Regulates access to alternative financing to banking. This aspect improves the use of instruments such as the crowdfunding, collective investment and venture capital.

In the current economic context, with high inflation that will affect consumption, support for small businesses and entrepreneurship is essential.